‘Quality not quantity’ call to Chinese leather sector
A less desirable similarity between the two sets of producers, however, is their shared difficult in meeting that demand. Whereas in Europe, the main problem of the moment is raw material shortages and rising prices, in China, it is disorganised management that is frustrating the industry’s attempts to fully exploit the opportunities of the marketplace.
Even high quality domestically produced cow leather garments are fetching no more at retail than their sheep leather counterparts (around $50 per item), and the situation is showing no signs of improvement.
At the core of the problem is the lack of consistency that currently exists between the different organisations involved in the leather-supply chain. Benchmarks for quality that prevail in one leather producer might be entirely different in another, while standards of management efficiency between organisations are equally inconsistent. The result is an industry that simply keeps on producing, but with little market focus or customer orientation.
To counter the situation, the China Leather Industry Association (CLIA) is now looking at ways in which management efficiency, communications and quality standards can be both improved and standardised. Though the association says the process will take some time, it is nevertheless seen as being vital if the industry is to remain competitive - let alone take advantage of the current heavy level of demand for leather garments.
Industry observers say that China’s leather industry should also aim for quality as well as quantity. Though last year the country’s total export production of leather goods amounted to $11.4 billion, a high proportion were low quality items, produced in obsolete factories where levels of investment – both in people and equipment - are nil.
Few manufacturers also sell under their own name – a situation highlighted by the fact that 90% of the 400 leather garment manufacturing enterprises operating in east Shandong province depend on Korean or other third-party organisations to market their products abroad.
